Best of 2021: Joe Biden, China-Australia relations dominate most read economy stories of the year
- A story looking at Joe Biden’s American Rescue Plan took centre stage at the top of a list otherwise dominated by China-Australia relations
- Global supply chain issues, Chinese students, US-China relations, trade and the closure of a Japanese-themed complex also featured
1. Will Joe Biden’s US$1.9 trillion ‘American Rescue Plan’ be a boon for China, or could excessive liquidity lead to financial trouble?
(Orange Wang and Amanda Lee – January 15, 2021)
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Latest US coronavirus stimulus package would put even more liquidity into global economy, and much could end up in China, where investment returns are promising
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Analysts say US president-elect’s proposal could further boost Chinese exports, but they also warn of hot money inflows creating dangerous asset bubbles
04:33
As Biden enters White House, world leaders express ‘relief’ and welcome ‘friend’ and ‘mate’ back
If Biden’s plan is successful in spurring American growth, analysts say it could eventually increase already strong US demand for Chinese products. But the People’s Bank of China (PBOC) is taking a more cautious outlook.
Responding to questions about the potential impact on China of Biden’s proposed aid package, Chen Yulu, deputy governor of the PBOC, said on Friday that the central bank must stay vigilant as it aims to “strictly prevent and control external financial risks”.
2. China container maker reaping rewards as Suez Canal blockage adds to global shortage, demand set for record high
(Sidney Leng- March 31, 2021)
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China International Marine Containers (CIMC) has seen the price of their 20-foot standard container (TEU) more than double from a year earlier to above US$3,500
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The blockage of the Suez Canal by the Ever Given ultra-large container ship has created a backlog of hundreds of vessels, which is set to further exacerbate global container shortages
Worsened by the recent Suez Canal blockage, global demand for containers could hit a historic high this year, further pushing up costs of shipping, according to the world’s largest container manufacturer.
During the coronavirus pandemic, the price of a 20-foot standard dry storage container (TEU) more than doubled from a year earlier to above US$3,500, and it is not expected to fall much for the rest of year, as demand for the containers and the cost of the raw materials needed to build them remains high, said Mai Boliang, chief executive of China International Marine Containers (CIMC), which produces around half of world’s containers.
01:30
Giant cargo ship causes marine traffic jam by blocking Egypt’s Suez Canal
“We have full orders for the first half of 2021, and expect the demand for containers to set new records this year. The latest blockage at the Suez Canal could worsen the shortage of containers for a longer time,” said Mai on Tuesday.